Volkswagen CEO predicts shorter EV delivery times this year.

• VW CEO: Delivery times for electric vehicles will decrease over the course of the year.
• Volkswagen stock increased by 5% during afternoon trades in London on Thursday.
• Volkswagen’s emphasis on electric vehicles contrasts sharply with the “dieselgate” crisis.

On Thursday, the CEO of German auto giant Volkswagen sought to allay worries about the sales of electric vehicles and the availability of semiconductors by forecasting that EV delivery times will decrease over the course of the year.

According to Herbert Diess, “the outlook is really positive, and we have a very good order intake in Asia.”

Automakers have recently found supply chain restrictions, notably those relating to semiconductors, to be a significant barrier.

Diess stated, “We’re attempting to keep delivery times short, but we now have a lead time of around a year, so we are ramping up production. There are now five assembly plants going into operation.

Also Read

Brazilian Volkswagen employees approve the $193 million investment

Workers at Volkswagen's Taubate plant in Brazil approve an investment of $192.97...

During afternoon trades in London, Volkswagen stock increased by 5%. The price of the Frankfurt-listed stock has decreased by more than 28% so far this year.

We will see a ramp-up in the second half of the year, he continued, “so that we can substantially shorten delivery times for our EVs.” Both in Europe and the US, there is a large demand.

Diess pointed out that semiconductors were still a bottleneck but predicted that this would soon change. He predicted that the situation would improve over the coming weeks.

Diess made his remarks on the same day that his company started construction on a cell facility in Salzgitter, Germany, and that PowerCo, a battery company, was established. PowerCo would be “responsible for global battery activities of the Volkswagen Group,” according to a statement.

PowerCo will “spend more than €20 billion [$20.4 billion] together with partners in the development of the business area, to produce annual revenues in excess of €20 billion and to employ up to 20,000 people in Europe alone,” according to the statement, which was made in the period up to 2030.

According to VW, at least 70% of its European revenue should come from electric vehicles by 2030. It aims to generate at least 50% of its income in China and North America from EVs.

The historic Scout brand will be brought back by Volkswagen as a totally electric pick-up and “rugged” SUV, with prototypes to be unveiled in 2023 and manufacturing to start in 2026.

The company is also focusing on the creation of cars like the T1 Microbus–inspired ID Buzz, which is entirely electric and dubbed the “hippie” van.

Volkswagen’s emphasis on electric vehicles contrasts sharply with the “dieselgate” crisis that rocked the company in the 2010s.

Currently, its electrification efforts put it in direct competition with historically significant automakers like GM and Ford as well as more recent entrants like Elon Musk’s Tesla.

When it comes to his company’s chances of competing with Tesla, Diess has remained upbeat.

Also Read

Volkswagen is looking to set up new electric vehicle & battery plants in US

Volkswagen of America CEO Scott Keogh told on Wednesday that the company...